VIDEO. Three thriving Scottish businesses, thanks to your support

The patron saint of Scotland, St Andrew was known for being strong, sociable and fair. Characteristics that Scots are proud to stand for, they celebrate St Andrew’s Day with acts of kindness and good deeds on the 30th November each year.

Whether you’re dancing a ceilidh, hiking around Loch Lomond or just knocking up some tatties and neeps, it’s a day to enjoy all things tartan. Plus as an official holiday, you get the day off work if you’re north of the border.

To join the celebration, we visited three thriving Scottish businesses: The Good Spirits Company, Alex McDougall Mowers and Highland Wi-Fi. All three businesses have been able to go further, thanks to the fantastic support of Funding Circle investors.

In this video you’ll meet Calum, Alex & Shirley and Matthew. They talk about why they’re proud to be a Scottish business and how support from Funding Circle has helped them achieve their business goals.

Want to lend to more businesses like this?

To help even more businesses get the funds they need to grow, sign in to your account and add more funds today. Remember, by lending to businesses your capital is at risk.

£1 billion lent through our Introducer team

2018 has been an incredible year at Funding Circle. A few weeks after listing on the London Stock Exchange, we’re proud to announce that our Introducer team has reached the milestone of £1 billion lent since it was formed in 2012.

To mark this occasion, we spoke to Luke Hultquist and Stuart Sterling from Halo Corporate Finance, one of the first introducers to work with us when we launched the Introducer channel.

Find out why Luke and Stuart choose to regularly introduce clients to Funding Circle in the video below. Our Head of Broker, Tom Shave, also discusses what’s coming up in 2019 and reveals the long term vision for the broker channel.

As our introducer network continues to grow across the UK, we’ll be able to help even more businesses access finance, supporting the economy and creating jobs.

Are you a commercial finance broker looking for a fast, affordable funding solution for your clients?

Get in touch with our dedicated Introducer team at or give us a call on 020 3667 2208

Lending directly to small businesses to create entrepreneurship scholarships

The University of Huddersfield has lent to over 2,000 UK small businesses through Funding Circle, thanks to a partnership where the University became the first to lend directly to businesses through a lending platform. Launched in 2013, the tie-up has created opportunities for students through entrepreneurship scholarships. Professor Bob Cryan, Vice-Chancellor at the University said: “I was originally drawn to Funding Circle because I felt that the platform’s innovative approach to investments and small businesses was a strong match to the ethos of the University.” 

Four years on, the University continues to lead the way in this area, having committed a further £1 million to the programme in 2014 after the initial investment of £100,000. One of the local businesses that has benefitted from the University’s lending is Ushiwear, a British clothing brand launched by husband-and-wife team Neil and Jilly Kapusi. The passionate duo were able to build on their success and go for growth after accessing finance through the platform.

Neil Kapusi, co-founder and COO of Ushiwear

“The capital injection from the University through Funding Circle has allowed Ushiwear to grow exponentially. We’re now currently in the process of a complete brand overhaul with everything from a new website, to a new shop, to new product lines. We’ve been able to invest in new equipment, boost our advertising and marketing and expand our team.” said Neil.

Are you interested in lending to businesses like these?
Lend alongside 75,000 investors and support small businesses across the UK by signing up online today. You can use our investor information guide to help you get started and there are thousands of loans which you can be a part of, making it quick and easy to build a diversified portfolio. Remember, by lending to businesses your capital is at risk.

Looking to expand your business?
More than 30,000 businesses in the UK have accessed finance from Funding Circle. You could boost your cash flow, refurbish premises, hire staff and much more. Check if you qualify for a business loan online in just 30 seconds.

Read between the lines: Saving for your summer holiday

We regularly bring you a column from Simon Read, a personal finance expert with extensive experience in helping people make the most of their money. In his last piece, Simon looked at the cost of Christmas.

If you’re like me, the depressing weather at this time of year will make you want to have something good to look forward to – a holiday in the sun! And knowing that in a few months you could be sitting poolside sipping a cocktail, or exploring that old ruin with the sun in your eyes, is a good way to help cope with the shorter nights and rainy days.

But assuming you want – like me – to have a fantastic summer holiday to look forward to, the question is, how to pay for it? The easiest and most convenient way is to simply put it on the credit card. You can worry about paying for it later but, if you’ve been sensible, you’ll have a piece of plastic that gives you cashback or loyalty points. If you’re splashing out a couple of grand on a decent holiday, think how much cashback that’ll net you!

But, and it’s a big but, if you don’t pay off credit card debt right away, you end up being stung by high interest. And that could mean putting your dream trip on plastic proves a costly mistake. If you can’t pay off the whole amount in one go, you could box clever by opening a card with a 0% deal and transferring the debt to that. However, that’s not taking account of the balance transfer fee. Many cards charge 3% for that so if you transferred £2,000 you’d have to pay out £60 for the privilege.

So maybe sticking the holiday on a credit card is not such a good idea. In fact it’s a lousy one. The simplest and easiest way to pay for a holiday is to plan for it. You know you’re going to go away in the summer so start saving for it months ahead. In fact the best way to pay for a holiday is to have a regular savings habit into a holiday account. Work out how much you plan to spend on your breaks each year and stash a 12th of the total away each month.

That should mean that paying for trips is painless. But it does mean planning; not just planning your saving but also your spending. You know when you have big costs coming up, annual insurances or council tax for instance, as well as holidays. Your saving plan should take account of your spending needs so that you can cope with big costs without having to dip into the red or use an expensive credit card.

In other words, think about what you’re saving for in 2018. For long-term savings you want to find the best possible return on your cash, which will mean being happy about making the most of peer-to-peer opportunities, or bonds. But for short-term savings where you know you will need the cash in a matter of months, you should keep it in an account that is easy to access. That will mean sacrificing decent returns for paltry ones, but is the price you have to pay.

Sorting savings into short-term and long-term is a good way to start a sensible savings plan.

That’s especially important as it means that once you’ve accounted for all your short-term needs, for holidays and bills and so on, the rest of the cash you have available to put in a nest egg can be used to get better returns. And that will leave you laughing all the way to the river bank or beach, depending on your chosen holiday.

The views expressed here belong to the author and do not represent those of Funding Circle. Funding Circle is not authorised to, and does not, provide investment, tax, legal or regulatory advice.

The information and views contained here are provided solely for informational purposes and should not be construed as legal, tax, regulatory, accounting or investment advice, or as a recommendation or an offer or invitation by Funding Circle.

To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, such information contained here.

If you have any questions, please speak to your professional adviser or seek independent specialist advice.

December’s Lending Impact and Borrower Stories


In this month’s Lending Impact, we look into the past, present and future of small businesses in a Funding Circle Christmas Carol. There’s also our latest case study, where you can meet the founder of The Creative Whisky Company, and finally discover six Funding Circle businesses that will help you get in the festive spirit this year.


Whatever the season, small businesses work harder on any given day than Mr Claus on Christmas Eve. To celebrate their hard work and determination, we’ve created our very own Christmas Carol, looking at the past, present and future of small businesses. We begin with the small business past, looking at the history of small businesses, and how they adapted during the industrial revolution. Next up, dive into the small business present and learn about the impact they have on today’s world and the trends that have helped them along the way. Finally, discover what the landscape might look like for businesses in years to come in our small business future.


In our latest case study video, meet David, founder of The Creative Whisky Company. The business was set up in 2005, bottling 15 casks of whisky a year, and today bottles seven times that amount. Although the business has grown significantly, one tradition remains the same; every whisky is “nosed and tasted” by David and his business partner to make sure it’s up to scratch.

A modern Christmas: festive experiences to enjoy this year

Local businesses are moving faster than Rudolph and Blitzen to help you make the most of the festive season. From the butchers and florists, to the bakers and wine merchants, these business owners know exactly what you need to have a joyful Christmas this year. Read more here.

November’s Lending Impact and Borrower Stories

In case you missed it, here’s last month’s post. We met Amy, the Director of The Strings Club, discovered the most read article by our business and community and listed five Funding Circle borrowers to prepare you for the Ashes.

Up next

At the beginning of January, we’ll publish our Insights and Analysis blog to review December’s activity, including statistics from across the platform and helpful tips to make the most of your investment.

As always, if you have any questions or comments our dedicated team are here to help. And if you have any further suggestions we’d love to hear them.

Enjoy lending, the Funding Circle team

ISAs, Brexit, and the 2017 Budget. November industry news

Fintechs take market share from the dominant high-street banks – Financial Times

In the third quarter of this year, net lending (that’s total lending minus repayments) to small businesses through Funding Circle was higher than the entire UK banking system for the first time.* During that time, over 1,700 British businesses were able to access the finance they need to grow and thrive. This is a great demonstration of the positive impact your lending is having on the economy. Together, we’re helping businesses reach their full potential and go even further.

UK peer-to-peer lenders plan to raise millions from ISAs – Financial Times

We’re really pleased to announce that we have started rolling out our Funding Circle ISA product to existing investors. With the Funding Circle ISA, you’ll be able to earn attractive, stable returns tax-free, while supporting the backbone of the UK economy. It also takes just minutes to set up your account. You can find out more about the ISA account, and register your interest if you are not currently lending through Funding Circle, here. More information can also be found in our FAQs, and blog. If you have any questions please get in touch. Remember, by lending to businesses your capital is at risk.

What fax machines and floppy disks reveal about Britain’s productivity problem – The Economist

During the 20th century, productivity growth in the UK increased steadily, but in the past decade, it’s barely budged. Today, many tech companies are trying to change this by using technology, such as machine-learning and AI, which helps to speed up tasks and increase efficiency. By embracing the growing digital economy and saying goodbye to fax machines and floppy disks, businesses have the power to shake off this productivity standstill and encourage faster growth across the country.  

Budget 2017: Business jury give a thumbs up for helping hand for small firms – The Times

It’s clear that our British small businesses have a key role to play in helping to solve the productivity problem as well. If more small businesses are given the right financial support in order to invest in these new technologies, it would help them maximise their output and effectiveness. Additionally, news in the Budget that the Chancellor will bring forward the switch in business rates indexation from the retail prices index to the consumer prices index is welcome. This and the freezing of the VAT threshold at £85,000 for the next two years is a step in the right direction.

Funding Circle borrowers back joining European Free Trade Agreement post-Brexit – P2P Finance News

The Budget also revealed that a further £3 billion is being set aside for Brexit planning. As the negotiations continue, we asked thousands of small business owners for their views. More than half (57%) of business owners in the UK are supportive of joining the European Free Trade Agreement – or the ‘Norway Option’. It’s evident that this route is a priority within the business community and it’s important that we listen to ensure we achieve the best possible outcome for their success. Check out our blog for the full results and read more in the Financial Times.

London’s startups stress out over Brexit—and ping pong – Bloomberg

Ping pong, the national sport of FinTech, brings together tech companies from all across London for a night of excitement, nail biting action and of course, pure glory for the winner. Not only is the event good fun, helping to build strong company morale, it also highlights the importance of access to talent post-Brexit for FinTech firms with many of the competitors coming from all over the world. At Funding Circle, 30% of our teams are non-UK European nationals, so we were pleased the government provided certainty to EU citizens living in the UK last week.

* Data taken from Bank of England ‘Bankstats (Monetary & Financial Statistics)’ – Table A8.1 ‘Monetary financial institutions’ loans to non-financial businesses, by size of business’ under ‘Net loans (exc overdrafts). Bank of England banks account for at least 75% of the lending market.

Autumn Internationals: around the world with Funding Circle borrowers

Rugby fans of the world unite. It’s a long time since a school boy with “a fine disregard for the rules of football” picked up the ball and ran, and the global game is as exciting as ever. Now the Autumn Internationals are in full swing (low, sweet chariot….) we’ve made a list of 4 Funding Circle borrowers to celebrate the coming together of rugby playing nations from around the world. Thanks to investors like you these businesses have been able to grow and prosper.

Eat authentic Argentinian in London

Established in 2007, Buenos Aires has 5 steakhouses in London and the South East which represent Argentina with ‘passion and pride.’ The restaurant serves traditional Argentine cuisine, including meat straight from Las Pampas cooked on an authentic barbecue. They borrowed £80,000 back in 2014 to open a new site in Richmond. Everything you need to be fighting fit to watch a Pumas game!


Taste the Orient in Newcastle

Save the airfare and sample hundreds of Japanese dishes at St Sushi in Newcastle City Centre. Dishes range from soup noodles to bento boxes and everything in between. The toon’s favourite sushi spot opened in 2006, and recently borrowed £106,000 to refurbish. Healthy and delicious, it’s tastier than a Japanese World Cup run.

Indulge in an Italian in Windsor

The Quagliozzi family  have been serving fresh and delicious dishes from their native Naples since 2009. They now have 4 restaurants for you to choose from including Viva L’Italia and the Italian Steakhouse. Book a table and talk tactics with your nearest and dearest while enjoying some superb spaghetti. More than 800 investors, like you, have helped the family business open a new Italian supermarket too!


Stock up on South African Sauvignon Blanc

According to the Cambridge Wine Merchants, who borrowed over £200,000 to expand, white wines from South Africa are fast overtaking reds in terms of international respect. Stock up on wines to watch the Springboks this Autumn from one of their 7 shops in Cambridgeshire or buy online. Started in 1993, they’ve won ‘Merchant of the Year’ at the International Wine Challenge (the world’s biggest wine competition) and three times been voted the UK’s No. 1 Independent Drinks Retailer. If you’re South African, maybe get an extra bottle to help forget the defeat to Ireland.

Are you interested in lending to businesses like these?

Lend alongside 72,000 investors and support small businesses across the UK by signing up online today. You can use our investor information guide to help you get started and there are thousands of loans which you can be a part of, making it quick and easy to build a diversified portfolio. Remember, by lending to businesses your capital is at risk.

Looking to expand your business?

More than 29,000 UK businesses have accessed finance through Funding Circle, helping with cash flow, refurbishment, hiring staff and much more. You can check if you qualify for a business loan online in just 30 seconds.

How do small business owners feel about Brexit?

During the summer, we spoke to more than 1,325 small business owners to canvass their views on the impact of the recent election and ongoing Brexit negotiations. What we found was that more than two-thirds of small businesses that import goods and services expect costs to increase when Britain leaves the European Union.

When we asked owners specifically about the expected cost increase, importing small businesses told us that they expect their average costs to increase by £5,300 per month resulting in £60,000 per year of extra spending. With 214,300 small businesses currently importing goods or services in the UK, the potential impact is vast at a local and national level.

Of course, Brexit negotiations have only really just begun, so it’s still tricky to know exactly what the impact our our exit from the EU will be. What is clear is that investors lending directly to small businesses is incredibly important to our nation’s prosperity. In the UK, small businesses account for 50% of GDP and 60% of private sector employment, so your support for them is crucial!

The results weren’t all doom and gloom, however, as the majority of businesses we spoke to expect to hire at least one new member of staff over the next year. Business owners were also pleased to state that they think the general election result will soften our EU exit strategy – which the majority think will be good for their business operations.

Investors at Funding Circle include 60,000 individuals, local and national government, the European Investment Bank and financial institutions such as pension funds. By opening up small business lending to a wide range of investors, Funding Circle has improved competition in the market, supported job creation and reduced small business dependency on bank lending.

To date investors have lent £2.5 billion to more than 25,000 UK small businesses. Businesses funded through the platform typically access the capital they need in days, and independent research found that 94% of businesses would come back to Funding Circle first in future.

If you’re a small business looking for finance, visit our website to check if you qualify in just 30 seconds.

Seven ideas to help you stay active this summer

Hello summer! Longer days means more time to get outside and try new activities. With Wimbledon kicking off next week, we wanted to share some of our favourite ways to get fit this summer, featuring businesses who specialise in keeping people active. So come along and join us on our journey across the UK as we visit some of these extraordinary companies who have flourished thanks to your support.

1. Canoeing in Scotland

Our journey begins in idyllic Scotland at an events and bespoke travel company that will help you kick-start your active summer. Sporting Scotland is run by a team of adventurous individuals who run a number of different activities including canoeing and sea kayaking down two of Scotland’s most exciting rivers, the River Spey and the River Findhorn. Both routes offer a spectacular chance to explore stunning beaches, coves, islands and cliffs. In order to refurbish their premises, Sporting Scotland borrowed over £30,000 through the Funding Circle platform in April 2017.

2. Cycling in Rugeley

If you’re an avid cyclist then our next stop is for you! Based in Rugeley, More Adventure provides high quality cycling challenges and holidays in various locations across the world. We suggest the 10 day ride from Lands End to John O’Groats – from one end of the UK to another. Nearly 1,000 miles in total, you’ll be travelling through some of the most glorious scenery England and Scotland has to offer. To help expand and explore new products, More Adventure have borrowed finance across two loans since November 2014.

3. Horseback riding in Shropshire

From Rugeley we’re heading West to stunning Shropshire to visit Live the Adventure and test our skills at horseback riding. From instructional treks for the beginners, to four day trail rides for those with a real sense of adventure, the Live the Adventure team can offer packages to suit any rider. To  develop more professional training programs the team turned to Funding Circle in 2014 and were able to secure a cash injection for their business.  

4. Golfing in Gloucestershire

Love golf? Then you’ll love the next stop on our trip across the UK. Sherdons Golf Centre, a family-run business in the Gloucestershire countryside welcomes golfers of all abilities. The centre boasts a 9 hole course as well as a clubhouse with banqueting and bar facilities – a great way to finish a long day on the course. The team at Sherdon’s were able to exercise their long-term marketing plan after borrowing finance from 474 investors in 2013.

5. Hot yoga in Bristol

The next business to visit on our journey is Yogafurie in beautiful Bristol, a hot yoga and pilates studio. Hot yoga is said to improve the circulation of oxygen and nutrients in the body which in turn fuels the mind – it’s a true full body workout. The team of superb teachers offer a range of different classes for all abilities. You could even join a teacher training or workshop if you’re a truly passionate yogi. Yogafurie was able to open a new space after borrowing £20,000 through Funding Circle.

6. Cricket in Hampshire

Next stop: Hampshire countryside. At Funding Circle, we love team sports, which is why we’re challenging you to set up your own cricket match! Don’t have the supplies? Take a trip to Chase Cricket for all of your equipment needs. Since 1996, the enthusiastic Chase Cricket team have been designing and handcrafting the very finest cricket bats for young and old in all levels of the game. To add a sales and marketing specialist to their team, Chase Cricket accessed finance from Funding Circle investors in April 2016.

7. Kitesurfing in Brighton

Our journey across the country ends in delightful Brighton where watersport lovers congregate in the summer. The Kite, Surf & Sup Company is a British Kitesports school and online shop set up in 2014. Founder Christine Johnston is a former windsurfing World Champion so her skills and expertise shines through in all of the lessons she teaches. To help increase stock and upgrade their website to help with online marketing, the kitesurfing company has borrowed finance across two loans from 127 investors.

Are you interested in lending to businesses like these?

Lend alongside over 62,000 investors and support small businesses across the UK by signing up online today.

You can use our investor information guide to help you get started and there are thousands of loans which you can be a part of, making it quick and easy to build a diversified portfolio. Remember, by lending to businesses your capital is at risk.

Looking to expand your business?

More than 25,000 businesses in the UK have accessed finance from Funding Circle, helping with cash flow, refurbishment, hiring staff and much more. You can check if you qualify for a business loan online in just 30 seconds.

Your June Review – Insight and Analysis

Your June Review
Summer has arrived, and it’s been another exciting month. We’ve been given full authorisation from the UK regulator, the Financial Conduct Authority – another step forward to offering industry-leading, tax-free returns with the Funding Circle ISA, which we plan to launch later this year. You can read the full story in this article.

Also included in this month’s post, personal finance expert Simon Read looks at what the record level of inflation in the UK could mean for you and what you can do about it. Dive in below.

May lending figures
Last month, you and other investors helped businesses to take new opportunities, create new jobs and drive energy into the UK economy — thank you for your continued support!

June review
Remember, your actual return may be higher or lower as your capital is at risk.

Monthly trends
These graphs show the most recent activity on the marketplace.

You’ve helped more than 8,500 small businesses access finance in the last 6 months…

June number of loans

Totalling over £610 million lent

June amount of loans

May 2017 sector breakdown

Amount lent to each sector

Business sectors

May 2017 regional breakdown

Amount lent to each UK region

June business regions

Making the most of your investment

May Industry News

The Times looks at a variety of different apps to help make your money work harder, from keeping track of your spending to monitoring investments. Read about this and more in our round-up of last month’s industry news.

What does rising inflation mean for your money?

With inflation in the UK at a four-year high, personal finance expert Simon Read looks at what this could mean for you and what you can do about it in his latest blog.

Loans defaulted last week
As part of lending to businesses, a small percentage will not be able to fully repay their loan. This is known as bad debt and is a normal part of business lending. We believe diversification, where you lend no more than 1% of your total to each business, is the best way to reduce the impact this has on your return. You can diversify automatically using our Autobid tool.

Each week, we publish a list of the loans being defaulted on the Customer support section of our website under ‘Announcements.’ To see a breakdown of the loans defaulted last week simply click on loans defaulted 1st June 2017.  For further information on why Funding Circle defaults loans you can read our FAQ here.

Collections and recoveries

How it works

You can also read more about how our collections and recoveries process works (part one and part two) on our blog.

Up next in June, we’ll be looking at the impact your lending is having on the UK economy and bringing to life some of the businesses you’ve helped access finance.

As always, if you have any questions or comments our dedicated team are here to help. And if you have any further suggestions we’d love to hear them.

Enjoy lending, the Funding Circle team

*The current estimated return is a weighted estimate of the annual return after fees and bad debts that investors could earn from lending money to businesses seeking loans today. It is calculated by taking the gross interest rate less fees and estimated bad debts that will occur in the future for each of the last 3000 loans accepted on the marketplace. The average return is weighted by loan amount, compounded and before tax. The return is updated daily. See the full calculation here.

This blog is a general summary, and should not replace financial advice tailored to your specific circumstances. Funding Circle is not authorised to, and does not, provide investment, tax, legal or regulatory advice. If you have any questions, please speak to your professional advisor or seek independent specialist advice.

A quiet crash in bank lending? March industry news

A quiet crash in big bank lending?

Bank of England statistics reveal that since the EU referendum, net lending (that’s total lending minus repayments) to British small businesses by 22 of the largest banks dropped from £1 billion in the second quarter of 2016, down to just £220 million in the last three months of the year. Meanwhile, Funding Circle investors lent £167 million on a net basis in Q4 alone! This is a great demonstration of the huge value your lending is having on the UK economy.

Bank said no, but I didn’t lose my sense of hummus

Helen Smith, founder of Glogg and one of Funding Circle’s many great borrowers, shares her company’s success story and experience of using direct lending for growth finance in The Times. When Glastonbury needed a business to produce 200,000 stainless steel pint cups for last year’s festival, Glogg stepped up to the challenge. Turning to Funding Circle for support, Helen was able to secure funding from hundreds of investors and the project was a huge success. Read the full story on our blog.

They came, they saw, they disrupted

It was also great to see Samir Desai, Funding Circle CEO, featured in the The Sunday Times Maserati 100 list, which recognises influential entrepreneurs who are disrupting the business world. In it’s third year, the award took a new approach and focused on celebrating the beneficial impact that these individuals are having on the economy. This type of recognition is only possible because of the continued support we receive from our customers on both sides of the platform so thank you!

The best places to put your cash if you want to beat inflation

With inflation on the rise, an article in This is Money explores a few tricks to help make your spare cash work harder. By considering these options, such as direct lending or investing in stocks and shares, you don’t have to leave your money in a cash Isa that loses value over time. Read more about direct lending and how you could earn stable, attractive returns by lending to small businesses – but remember, when you lend, your capital it at risk.

Read between the lines: New tax year, new tax planning

Speaking of financial planning, personal finance expert and former editor at The Independent Simon Read, gives his advice on how to approach financial decisions in our new blog series ‘Read between the lines’. When planning for the new tax year, Simon encourages investors to be proactive and start the process as early in the year as possible so that there’s plenty of time to take any potential changes into account. To learn about what the recent Spring Budget means for you, check out this video on our blog.

Funding Circle secures $100M investment from CIM

And finally, our US business announced that Community Investment Management, an impact investment firm focused on direct lending, is now lending an additional $100 million to American small businesses. This exciting agreement gives even more businesses the opportunity to access the finance they need, which in turn encourages job creation and economic growth in local communities across the United States.

Six ways to celebrate the Six Nations

As the final day of the Six Nations approaches – dubbed ‘Super Saturday’ for its back-to-back three match extravaganza – we thought we’d take the opportunity to celebrate 6 unique small businesses that represent each of the countries competing in the tournament.

Scotland v Italy

There’s two areas in which the Scots are infallible; their passion, and their whiskey. The aptly named The Good Spirits Co. in Glasgow was set up by three drinks enthusiasts – including a co-founder of the Glasgow Whisky Festival! They offer a huge range of the best spirits from every corner of the earth, as well as holding tastings and offering their very own octave of whisky called Cask 23.

Pizza hails from Naples but The Real Pizza Company have brought authentic pizzas to Crawley. They are cooked at 400 degrees and can be cooked in bulk on match day to feed the crowd! Their immense flavour will be enough to cheer up any Italian supporter!

France v Wales

French Flavour work closely with artisan producers from both France and the UK to bring the finest wines, cheeses, chocolates and much more – straight to your door! Why not treat yourself to one of their cheese and wine subscription boxes and receive a different selection of hand-picked wines chosen to complement top quality cheeses – every month!

A lesser known fact about the country with the lowest population in the tournament, is that Wales is believed to have more castles per square-mile than any other country in the world! So naturally, we picked out Castle Hotel Aberaeron as our Welsh business of choice. The luxury hotel is situated within a Grade II listed building in the Georgian harbour town of Aberaeron – conveniently located minutes from the seaside. If you find yourself on the west coast of Wales – pop in for some food or a drink… you can’t miss it’s fluorescent pink exterior!

Ireland v England

There’s nothing quite so English as a good portion of fish and chips. London-based Poppie’s Fish and Chips have been going at it since the ‘50s, using only the best and most responsibly sourced fish in their dishes – they combine the perfect blend of taste and nostalgia to create the ultimate chip shop experience. Next time you’re in Soho, Spitalfields or Camden – be sure to pay them a visit!

Now we head to Lisnaskea – a small town in County Fermanagh – to bask in the highest quality, locally sourced baked goods in Northern Ireland. Cherrytree Home Bakery have been baking traditional breads, cakes, scones and more since 1970 – using only the best available produce. Owners Isobel and Norman encourage cake enthusiasts to ‘Come to Lisnaskea and follow the smell of good quality, fresh home banking!

We hope you enjoy the matches this weekend. Whatever your interests – there’s a Funding Circle borrower for you!
If you’re interested in lending to small businesses like these, you could earn 7.1% per year by getting started today. You can use our investor information guide to help you get started and there are thousands of loans which you can be a part of, making it quick and easy to build a diversified portfolio. Remember, your actual return may be higher or lower as by lending to businesses your capital is at risk.

Bad debt, defaults and why not to be afraid of them

Bad debt explained

As part of our Explainer series, here we’re looking at bad debt and loan defaults. We’ll describe what these terms mean from an investor point of view, then look at how you can reduce their impact and still earn a good return at Funding Circle.

What is a loan default?

A loan may be defaulted when a business is late in its repayments, has entered insolvency or has otherwise breached the terms and conditions of the loan. The remaining balance and interest is then demanded from the borrower and loan guarantors.

We’ll take the decision to default a loan if we think it’s necessary to protect the interests of investors. In some circumstances defaults are mandatory.

What is bad debt?

When a loan is defaulted, bad debt is the money potentially lost by investors. This amount may be reduced during the recovery process (more on this below).

Why do they happen?

Businesses may run into difficulties for a wide variety of reasons. The most common causes are cashflow (i.e. customers not paying on time, or creditors demanding immediate repayment), increased competition, losing a large contract, illness of the business owner or key workers, and regulatory changes making the business non-viable.

Consequently, a few of the businesses you lend to will be unable to fully repay their loans. The level of bad debt we expect you to experience depends on your chosen lending option. As it’s accounted for, this is included in your projected return.

How do we account for them?

As defaults are a known risk, we take them into account when setting interest rates. Our credit assessment team perform rigorous checks on all businesses and if we estimate a business is higher risk, they pay a higher interest rate to compensate.

For each risk band, the money lost on loans that default is balanced by the extra interest paid by those that repay. As long as the bad debt rate stays within expectations, investors can still earn good returns. That’s why when we give a projected return, we give you the figure after bad debt and fees.

Reduce the impact of bad debt with diversification

Diversification is a simple way to help reduce the impact of bad debt on your investment. Diversifying means splitting your investment into lots of small pieces, and lending them out to different businesses.

  • Without diversification – As an example, say you lent £2,000 all to just one business. If they defaulted on their loan, you could lose all of your money in one go.
  • With diversification – Instead, if you were to split your £2,000 across 100 businesses, you could then lend just £20 to each. Then if one or two of them defaulted, you would only lose £20-40. You would still earn interest from the other 98 businesses you’ve lent to, so would still have a great chance of earning a good return overall.

How to diversify

Our automatic lending tool helps you to quickly build a diversified portfolio. It will split your funds into small chunks and lend them to different businesses. These are called loan parts and they start from £20. We suggest lending £2,000 or more, as this allows you to lend at least 100 businesses, with no more that 1% of your total going to each one.

Every investor who has followed these two steps has earned a positive return. 98% have earned 4% or more. If you’d like to start with less, the minimum initial transfer is £1,000. Data correct as of 31st December 2017.

Learn more about diversification here.

Collections & Recoveries – helping recover as much as possible for investors

Almost all Funding Circle loans are supported by a personal guarantee from company directors (property loans can differ). If a business is unable to repay the loan, our team can look to recover the outstanding balance from the guarantors.

Our Collections & Recoveries team pursue every single defaulted loan, arranging a new payment plan if possible, or exhausting every legal process available. The team has a range of methods and technologies in place to recover as much as possible for you.

When a loan defaults it will show the total loss on your account. However, our team are often able to recover a significant portion of that loss. As of December 2017, they have successfully recovered 48% of defaulted loans taken between 2010-2014, so it’s worth remembering that the amount “lost” on any recent defaults may improve over time.

The success of the team’s approach led to them winning the 2015 CICM Best Collections Team and 2016 Credit Excellence Award for Collections from CCRI.

You can read more about our Collections & Recoveries process here.

Things to remember

Hopefully now you have a better understanding of bad debt and defaults. Here are a few key points to remember:

Don’t panic!

Bad debt is inevitable, so be prepared for a small percentage of loans to default. It’s accounted for in our interest rates, and if you diversify you’ve still got a great chance of making a good return.


Splitting your investment across at least 100 businesses, with no more than 1% lent to each one, reduces the impact of any defaulted loans.

We’ll help you out

Our Collections & Recoveries team will work to recover as much of the debt as possible, but this will take time. They will update you on late and defaulted loans through your Funding Circle account.

Of course if you have any questions our Investor Support team are on hand to help, and can talk you through any activity on your account. You can call them on 0207 401 9111 or email

It is important to remember that past performance is not a guide to future performance, and your capital is at risk when lending to businesses.


British business booming after Brexit. February industry news.

Brexit Terrified This CEO. Then Business Jumped 50%

Last month, Bloomberg featured Funding Circle in a deep dive analysis of investor and borrower reaction to Britain’s vote to leave the European Union. Over the course of the last six months we’ve seen small businesses adapt and continue to invest. This has been made possible by your lending, with more than £500 million lent in the second half of 2016 alone. Supporting these businesses, who make up 50% of GDP and 60% of private sector employment, is crucial to the success of the UK economy.

Leading marketplace lender Funding Circle tops £2bn mark

Another exciting milestone as investors hit £2 billion lent to UK small businesses through Funding Circle since 2010. That means you have supported more than 22,000 small businesses with the funding they need to grow, helping to create more than 50,000 new jobs! We are seeing huge demand for fast, fair, flexible finance from businesses, which means many more lending opportunities on the platform. Watch this video to find out about the importance of diversification, where you lend small amounts to hundreds of businesses in order to manage risk.

Alternative finance in the UK ticks over £10bn mark

The wider crowdfunding sector also celebrated a major milestone this month having facilitated investment worth £10 billion, which is more than double the cumulative total during the same period in 2015. The rapid increase in consumers and businesses turning to alternatives for funding is testament to the customer experience that platforms have on offer. Hundreds of thousands of investors and borrowers alike have now benefited from a new and innovative way of taking out a loan or earning a return.

MarketInvoice and Funding Circle represent P2P on fintech delivery panel

February also saw the launch of one of the Government’s initiatives to help maintain the UK’s position as a global Financial Technology hub during Brexit negotiations. The FinTech Delivery Panel, which was set up by the Treasury and TechCityUK, is made up of senior figures from some of Britain’s most innovative companies and will help steer policy in such a way that ensures the UK’s thriving FinTech sector continues to be the best in the world.

European fintech deals hit 5-year high in 2016

European FinTech companies defied the global trend of a reduction in investment in 2016, with the number of deals increasing by 11 percent in Europe compared to a 1 percent drop globally. In total, innovative FinTech businesses attracted more than $1.2 billion of investment. 2017 is already looking like a good year for the industry with Funding Circle kicking off the fundraising with our £82 million raise in January – enabling further investment into our technology platform to create an ever better experience for our customers!

How your savings will be affected by the Bank of England’s interest rate freeze

And finally, as the high street banks continue to offer poor returns amidst the Bank of England’s decision to freeze rates at 0.25%, this Daily Mirror articles explores the many other options available as a means of making your spare cash work harder for you. By turning to investments such as peer-to-peer lending, you could earn attractive returns by lending to small businesses – but remember, this is an investment not a savings product so your capital is at risk.

Are you interested in lending to businesses through Funding Circle?

Lend alongside 58,000 investors and support small businesses across the UK by signing up online today. You can use our investor information guide to help you get started and there are thousands of loans which you can be a part of, making it quick and easy to build a diversified portfolio. Remember, by lending to businesses your capital is at risk.

Looking to expand your business?

More than 20,000 businesses in the UK have accessed finance from Funding Circle, helping with seasonal cash flow, refurbishment, asset finance and much more. You can check if you qualify for a business loan online in just 30 seconds.


Industry insights: 90 seconds with an expert

No one knows more about the day to day running of a business than the Funding Circle borrower community, so each month we ask an industry expert to share their expertise.

Industry insights (4) The motorcycle industry

Recently we spoke to Candy from Suffolk Canine Creche, to hear her views on how to build and run an award-winning accommodation facility for fun-loving dogs. This month, we caught up with Andy, founder and owner of Teasdale Motorcycles, to get his advice on how to run a very successful ‘one-stop shop’ for motorcycle enthusiasts. Since 2012, Teasdale have borrowed £167,000 from thousands of investors through Funding Circle, helping them to move to larger premises, hire new staff and boost their online business!

Teasdale motors

Find out more about Andy’s thriving motorcycle retailer in this short video.

Teasdale Motorcycles was set up by Andy Walker in 2002 when he decided to turn his love for motorcycles into a career. Since then, Teasdale Motorcycles has flourished and established itself as one of the North East’s largest motorcycle dealerships. They currently hold the franchise for Aprilia, Moto Guzzi, Norton and KTM Street Motorcycles. Teasdale Motorcycles moved to a larger freehold premises in 2012, and are currently midway through a total redevelopment of their site on Long Street, Thirsk – upsizing by two-thirds of its original size.

Watch our short video to find out more about the motorcycle industry:

Andy’s three insights for managing a motorbike shop are:

  • Be a one-stop shop for bike lovers: offer a range of products and services so your customers can rely on you for whatever their needs require
  • Be flexible: Consumer’s needs are constantly changing, so be prepared to adapt in order to keep up with customer demand
  • Be a strong ambassador for your franchises: When working with big brands, try and operate the partnership in a way that benefits both parties – that way, you benefit from great products and they benefit from your exposure

Are you looking to grow your business?

20,000 UK businesses like Teasdale Motorcycles have accessed finance with Funding Circle, helping with cash flow, refurbishment, hiring staff and much more. Get your instant quote and start growing your business today!


Innovation and regulation. December industry news

Watchdog to toughen rules on crowdfunding

The big news last month was the regulator’s interim response to their review of crowdfunding and peer-to-peer lending regulation. The Financial Conduct Authority (FCA) focused on the diversity of peer-to-peer lending models within the sector now compared to a few years ago, and plan to take a more nuanced view of the industry as they develop future regulation. This is welcome news; as the industry grows and evolves, it’s right that it is regulated accordingly and in the best interests of customers.

These are 2016’s top 100 influential leaders in Fintech

Elsewhere, City AM featured Hot Topics’ top 100 Fintech influential leaders list for 2016, with a vast array of impressive individuals from a number of different types of Fintech companies. This includes mobile banking, insurtech, cloud accounting and of course, peer-to-peer lending! Funding Circle’s very own co-founder and CEO Samir Desai features in the list alongside a number of his Fintech founder counterparts.

Peer-to-peer lending: what can it offer SMEs?

The Daily Telegraph took a deep dive into the benefits of peer-to-peer lending for small businesses, featuring a Cornish case study whose farmhouse dreams were made a reality thanks to a peer-to-peer lending platform. Coombeshead Farm struggled to access finance through traditional routes but found that borrowing through a direct lending platform was much easier. A small business expert suggests that “the beauty of alternative finance is the speed and efficiency.” You can read all about a number of Funding Circle success stories on our business case study page here.

Compare P2P lending: The easy way to search for potentially higher returns

Moving on to the benefits for potential investors – the Daily Mail teamed up with Fundshare to create a comparison tool for budding lenders. You can adjust your preferences and see which platforms best suit your interests, with information on minimum and maximum investment, security, loan duration and returns. The article also includes a list of the pros and cons of lending through a platform like Funding Circle, which is useful reading for anyone new to the sector.

FT City Network transcript: The markets and a Trump presidency

And finally, Samir Desai made an appearance in the Financial Times’ City Network transcript giving his thoughts on the impact of Donald Trump’s victory on the financial sector and society more generally. He believes that if financial services firms do benefit from the result – it must not be at the expense of consumers, small businesses and communities alike.

Looking to expand your business?

More than 20,000 businesses in the UK have accessed finance from Funding Circle, helping with seasonal cash flow, refurbishment, asset finance and much more. You can check if you qualify for a business loan online in just 30 seconds.

Your last minute stocking fillers sorted | Weekly Lending Review

Week 50: 12 – 16 December

In the run up to December 25th we’ve been showcasing presents, food, drinks and decorations from Funding Circle borrowers. This week we’ve put together a list of last minute stocking fillers to help make your Christmas extra special.

This will be the last weekly lending review of 2016: we’ll be back in touch in the week commencing 3rd January. We hope you all have a nice break!

New loans available to you

There are currently 10 loan requests on the marketplace, and thousands of loan parts available for you to buy which will help you become diversified.

The total value of new loans listed on the Funding Circle marketplace was £25,184,678, averaging at £76,895 per loan. The largest loan value was £555,240 and the smallest loan value was £5,100.

Business loans available to bid on:

Gross interest rates are before fees and bad debts. Your actual return may be higher or lower as by lending to businesses, your capital is at risk.

Weekly marketplace trends

These graphs show the most recent activity on the marketplace.

The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn (The calculation is AGY = (1 + (two week rolling weighted average rate/12))^12 – 1). You can view the latest gross interest rates accepted on the marketplace on our statistics page.

Weekly average gross yield (2 weeks rolling)

WLR 50 - yield

Number of loans, value of loans and amount lent are reported weekly.

Number of listed loans per week

 WLR 50 loans listed

Listed loan value per week

 WLR 50 loan value

Total amount lent

 WLR 50 amount lent

Loan parts available to buy from other investors

 WLR 50 loan parts

Loans defaulted last week

Meat wholesaler. Loan 25031. Risk band B

This London business was established in 2012 and a petition has been registered.

Plant hire. Loan 4157. Risk band A+

This Ayrshire business has been running since 2006 and has been placed into liquidation.

Car showroom. Loan 8016. Risk band D

This South Yorkshire business was established in 2002 and is three months in arrears.

Pub. Loan 10516. Risk band D

This Cheshire business has been running since 2015 and is four months in arrears.

Builders. Loan 8610. Risk band D

This Somerset business was established in 2009 and has ceased trading.

Care Home. Loan 2380. Risk band A

This Lancashire business was established in 2005 and is three months in arrears.

Management consultants. Loan 4244. Risk band B

This Lancashire business has been running since 2005 and is four months in arrears.

Pet shop. Loan 7932. Risk band D

This West Midlands business was established in 1995 and has become unresponsive after missing repayments.

Designers. Loan 17753. Risk band E

This Somerset business has been running since 2003 and is three months in arrears.

Skip hire. Loan 12628. Risk band C

This North Wales business is three months in arrears.

Machinery suppliers. Loan 7257. Risk band C

This South Yorkshire business was established in 2010 and are three months in arrears.

Property developers. Loan 25075. Risk band A+

This Lancashire business was established in 2010 and has become unresponsive after missing repayments.

Construction company. Loan 26857. Risk band D

This Monmouthshire business was established in 2013 and has ceased trading.

Property maintenance contractor. Loan 20845. Risk band D

This Monmouthshire business was established in 2013 and has ceased trading.

Restaurant. Loan 5742. Risk band D

This Cheshire business was established in 2010 and has been dissolved.

Benefits of diversification

Lending to businesses can deliver attractive returns, while helping businesses access the finance they need to grow. However, from time-to-time some businesses will be unable to repay their loan, which is why lending a small amount to lots of different businesses is so important. Watch our 90 second diversification video below to find out more.

Our collections and recoveries team are working to recover the outstanding amounts for all of the loans described above and they will provide you with updates in the loan comments section on your summary page. Read how our collections and recoveries process works (part one and part two) on our blog.

Enjoy lending, the Funding Circle team

Highlights from our summer investor evening

This summer, we welcomed 60 investors to our office in London for our fifth investor evening. We always enjoy meeting you, these evenings are a great way for you to find out what we have been working on, as well as providing a forum to give feedback. We hope those who attended had a great evening ‒ we really appreciate you taking the time to visit us.

For those who weren’t able to attend, we have put together a couple of videos from the evening. The first is a quick two minute highlight video showing how the evening went.


We also wanted to share an extended highlights video, outlining some of the key themes of the evening:

Key Themes:

Playing a vital role in the economy

James Meekings, Co-founder and UK Managing Director, gave an overview of the positive impact your lending has had on the UK economy since 2010, along with an update on what the EU referendum means for Funding Circle. Read more on how your lending has boosted the U.K Economy by £2.7 billion since 2010.

Delivering a strong and consistent credit performance

Jerome Le Luel, our Global Chief Risk officer, discussed how we use a balanced mix of risk tools when assessing businesses to ensure we create a full picture of a borrower’s financial health.

Jerome also discussed our recent work in stress-testing the Funding Circle loanbook. You can see what could happen to your returns in the event of the UK entering a recession on our blog. Remember, by lending to businesses your capital is at risk.

Supporting Britain’s small homebuilders

Luke Jooste, head of Real Estate & Broker Introduced Finance, talked about how Funding Circle investors are providing a solution to Britain’s housing crisis, helping to bridge the funding gap that small property developers face. We’ll be discussing more on how property lending works at Funding Circle in the coming months.

Working hard to recover your investment

Andrew Jackson, head of Collections and Recoveries, shared how the recovery rate on defaulted loans has increased since bringing our Collections and Recoveries team in-house in 2014. He also spoke about our ‘survival for revival’ strategy – which often yields the best long term results for investors.

You can read more on how our collections and recoveries process works here.

We always look forward to meeting you, and will hold more of these evenings in the future. Look out for invitations in future weekly and monthly newsletters.

Enjoy lending,

The Funding Circle team